Saudi Bank Deposits Dip as Credit Growth Cools

Total deposits in Saudi banks declined month-on-month in July 2026, marking the first such drop since late 2025 and pushing the sector's loan-to-deposit ratio higher,

The move came alongside a broader slowdown in lending. Across the first and second quarters of 2026, bank credit growth eased from the double-digit annual rates seen in 2025 to mid-single-digit levels, reflecting slower expansion of loans to both private and public sectors. By February 2026, total bank credit had reached about SAR 3.33 trillion, with annual growth near 9–10% — down from the roughly 14–16% pace recorded during parts of 2025.

On the deposits side, the picture had been stronger earlier in the year. At the end of the first quarter of 2026, total deposits stood at around SAR 3.05 trillion, up roughly 8–9% year-on-year and about 4% quarter-on-quarter. Through early 2026, deposits generally grew faster than credit, led by time and savings deposits, which posted year-on-year increases above 20%.

At the same time, demand deposits were weak or negative in several months, falling month-on-month while longer-term deposits rose. This shift moved the deposit mix toward more stable, longer-term funding, and helped push the simple loan-to-deposit ratio up in periods when total deposits softened.

These figures are aggregate monetary statistics published by the Saudi Central Bank and sector analysts. They carry no fees or charges for customers and are not linked to any individual service platform or application steps for residents or companies. For the wider community, the trends offer a useful read on the direction of lending conditions and the availability of funding in the Kingdom's banking system.

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